Vietnam’s National Assembly has approved a government-proposed socio-economic plan for 2021, under which the local economy would grow 6.0%, resulting in GDP per capita of US$3,700, and the consumer price index (CPI), the main gauge for inflation, is set to rise 4%.

12 major socio-economic development targets for 2021 received approval rate of 89.21%.

This is among 12 major socio-economic development targets for 2021 that received the endorsement of 430 out of 439 National Assembly deputies present on November 11 morning.

12 socio-economic development targets for 2021.

During the session, a number of deputies expressed concern that the GDP growth target of 6% is quite high, given uncertainties stemming from the Covid-19 pandemic, and suggested a lower target in the 5.5 – 6% range.

Meanwhile, others said this would be quite challenging as the country continues to pursue the dual target of both containing the pandemic and boosting economic recovery.

In response, Vice Chairman of the National Assembly Phung Quoc Hien said the estimation for the GDP growth target in 2021 is based on this year’s economic performance and expected scenarios for next year.

Chart: Hai Yen.

A 6%-growth target shows the government’s determination, while ensuring consistency with other objectives, he noted.

At a discussion session on November 10, Prime Minister Nguyen Xuan Phuc noted the 6% growth target remains modest compared to the country’s economic potential, and also is partly due to the estimated low economic growth in 2020.

However, during the current circumstance of the Covid-19 pandemic and tensions among economies globally, the government is preparing different growth scenarios.

In any case, Vietnam has to stay active to deal with unexpected situations and fulfill socio-economic development targets with its best efforts, stated Mr. Phuc.

New framework for corporate governance at SOEs required

At today’s session, the National Assembly also requested the government to allocate sufficient resources to continue supporting the business community and people affected by the pandemic, especially those in the fields of manufacturing, services, tourism, and aviation, among others, as well as people losing their jobs or having income significantly reduced.

The National Assembly expected drastic measures to tackle bad debts while the government should focus on restructuring credit institutions, including weak banks, to ensure safety of the banking system.

Technology and science are expected to continue to be incorporated into various economic fields, particularly in the banking sector.

The government would continue to speed up the process of privatization and divestment of state capital at state-owned enterprises (SOEs) while setting up a standard corporate governance framework in accordance with international standards at major state-run corporations.

SOEs are required to strictly comply with existing regulations in the management of state resources in a fair and transparent manner.